Summary as passed:(all summaries)Optional retirement plans of institutions of higher education. Authorizes
institutions of higher education to establish their own optional retirement plans for
employees engaged in the performance of teaching, administrative, or research duties,
as an alternative to the Virginia Retirement System ("VRS") defined benefit
retirement plan. The bill provides that VRS shall give initial approval to
institutions of higher education seeking to establish such optional retirement
plans. The bill prohibits such institutions from adopting policies that are
substantially different than the retirement policies approved by VRS in the
initial approval process unless the VRS Board approves such policies in
writing. Prior to granting to any institution of higher education approval to
establish its own optional retirement plan, VRS shall release a plan to the
chairmen of the Senate Committee on Finance and the House Appropriations
Committee establishing criteria and guidelines VRS shall apply in granting
approval for such optional retirement plans.

Any employee hired on or after July 1, 2003, by an institution of higher
education to perform such duties, shall make an election to participate in
either the VRS defined benefit retirement plan or in an optional retirement
plan. If an employee chooses to participate in an optional retirement plan but
the institution of higher education has not established its own optional
retirement plan, the employee shall participate in an optional retirement plan
maintained by VRS. However, at such time that the institution establishes its
own optional retirement plan, any employee (i) engaged in the performance of
teaching, administrative, or research duties and (ii) participating in an
optional retirement plan, shall immediately begin to participate in the
optional retirement plan of the institution, notwithstanding any prior election
to participate in a different optional retirement plan.

The bill provides different options for University of Virginia Medical Center
employees. Any employee of the Medical Center hired on or after July 1, 2003,
shall participate in the optional retirement plan of the Medical Center,
provided, however, that if such employee was participating in the VRS defined
benefit retirement plan immediately prior to such hiring, such employee may
elect to continue to participate in the defined benefit retirement plan.